First Financial Restructuring and operating efficiency: Evidence from Taiwanese commercial banks

Hsiao, Hsing‐Chin; Chang, Hsihui; Cianci, Anna M.; Huang, Lihua

doi:10.1016/j.jbankfin.2010.01.013

“…Again, same as for the efficiency variable, findings for ROA confirm that higher NPL levels are negatively related to short-run performance. Moreover, this is in line with previous studies that employed similar variables (Banker et al 2010;Hsiao et al 2010).…”

Section: The Effect Of Risk On Performancesupporting

confidence: 92%

“…On the one hand, there are studies that link risk with performance. To name just a few, analyses exist for the US (Hughes and Mester 1998), Japan (Altunbas et al 2000;Barros et al 2012), South Korea (Park and Weber 2006;Banker et al 2010), Taiwan (Hsiao et al 2010), Brasil (Tabak et al 2011), for various Latin American countries (Yildirim and Philippatos 2007) or for 87 countries around the world (Lozano-Vivas and Pasiouras 2010). Main findings indicate that the level of financial capital is positively related to efficiency and that using risk variables does not contribute to explaining scale inefficiencies (Hughes and Mester 1998;Altunbas et al 2000).…”

Section: Theoretical Underpinningsmentioning

confidence: 99%

“…Recent banking studies analysed the impact of risk on performance and, on occasions, attempted to introduce risk measures in performance assessments (see, e.g., Hughes and Mester (1998), Altunbas et al (2000), Park and Weber (2006), Banker et al (2010), Hsiao et al (2010) or Barros et al (2012)). There remains, however, a need to unify these approaches by using risk factors as an integrating part of performance analyses.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Monitoring bank performance in the presence of risk

Epure

¹

,

Lafuente

²

2014

View full text Add to dashboard Cite

This paper devises management and accounting tools for monitoring bank performance. We first propose a multidimensional efficiency measure that integrates credit risk and is adapted to the real banking technology. Second, traditional accounting ratios complement the analysis. Third, the impact of different risk measures over efficiency and accounting ratios is shown. Fourth, we examine the effect of CEO turnover on future performance. An empirical application considers a unique dataset of Costa Rican banks during 1998-2007. Results reveal that performance improvements follow regulatory changes and that risk explains differences in performance. Non-performing loans negatively affect efficiency and return on assets, whereas the capital adequacy ratio positively affects the net interest margin. This supports that incurring monitoring costs and having higher levels of capitalisation may enhance performance. Finally, results confirm that appointing CEOs from outside the bank significantly improves performance, thus suggesting the potential benefits of new organisational practices.

show abstract

“…Banks with low levels of capital adequacy are subject to higher scrutiny by regulators. Accordingly, under-capitalised banks will have a more reduced operational flexibility and a limited capacity to undertake strategic and financial actions, which could be detrimental to their performance (Hsiao et al 2010). Efficient banks may have an orientation towards higher levels of capital adequacy.…”

Section: Theoretical Underpinningsmentioning

confidence: 99%

Monitoring Bank Performance in the Presence of Risk

Epure

¹

,

Lafuente

²

2014

View full text Add to dashboard Cite

This paper devises management and accounting tools for monitoring bank performance. We first propose a multidimensional efficiency measure that integrates credit risk and is adapted to the real banking technology. Second, traditional accounting ratios complement the analysis. Third, the impact of different risk measures over efficiency and accounting ratios is shown. Fourth, we examine the effect of CEO turnover on future performance. An empirical application considers a unique dataset of Costa Rican banks during 1998-2007. Results reveal that performance improvements follow regulatory changes and that risk explains differences in performance. Non-performing loans negatively affect efficiency and return on assets, whereas the capital adequacy ratio positively affects the net interest margin. This supports that incurring monitoring costs and having higher levels of capitalisation may enhance performance. Finally, results confirm that appointing CEOs from outside the bank significantly improves performance, thus suggesting the potential benefits of new organisational practices.

show abstract

“…Banks. Studies conducted to calculate the efficiency of banking sector on developing countries are by Banker et al in (2010) in South Korea, Chiu and Chen in Taiwan (2009) and Hsiao et al in (2010) Taiwan and Heffernan in (2007) and Haw et al in (2010) South Korea, Indonesia, Thailand, Philippines, Malaysia andTaiwan andLozano andPasiouras in (2010). Sun and Chang (2011) investigated the influence of risk adopted methods on banks efficiency in developing countries of Asian region and reported that risk measures have significant positive influence on bank's efficiency and it varies in different countries during different time periods.…”

Section: Introductionmentioning

confidence: 99%

Efficiency of Banks in Pakistan: A Non Parametric Approach

Haque¹,

Tariq²

2012

Business and Economic Research

View full text Add to dashboard Cite

Banks play a vital role in growth and development of an economy through prudent allocation of capital resources and their efficient utilization. This study evaluates efficiency of banking sector of Pakistan, including both conventional and Islamic banking, for the time period 2006-2010 by covering a total of 22 banks; Sample includes 16 Conventional and 6 Islamic banks. Efficiency is measured through frontier non parametric technique of data envelopment analysis based on intermediation approach. During the sample period the banking sector was not much efficient in the year 2009 and the estimated efficiency scores recommend that Islamic banks performed more efficiently during the study period as compared to Conventional banks.

show abstract

First Financial Restructuring and operating efficiency: Evidence from Taiwanese commercial banks

Cited by 126 publications

References 46 publications

Monitoring bank performance in the presence of risk

Monitoring bank performance in the presence of risk

Monitoring Bank Performance in the Presence of Risk

Efficiency of Banks in Pakistan: A Non Parametric Approach

Contact Info

Product

Resources

About